Blockchain-Based Cash Transfers for Refugees

Blockchain can be used to enhance the transparency and effectiveness of charitable donations in the aid industry, which is exactly what AID:Tech is implementing.

AID:Tech has developed a blockchain-based system for aid project donations to improve transparency and effectiveness of donations, encouraging further donations to be made. By providing those in need with a digital identity secured on immutable blockchain systems, digital-cash transfers can be made to help the most vulnerable. These transfers can be given as vouchers, so that they are only used for the certain payments, like food or clothing. It also means that whoever made the donation can see exactly where their money has been used.

In a trial project in 2015, the company gave cryptocurrency vouchers to Syrian refugees in Lebanon. The vouchers, resembling plastic credit cards, could be used in local shops to buy essential products for the refugees. They were unknowingly participating in a seamless end-to-end blockchain-based digital-cash project. The company were also the first blockchain company to receive capital from two government-backed initiatives and funds. AID:tech are now exploring the potential value in creating digital identities for those in need as a stepping stone to providing poverty alleviation services and tools.

Why you should care

The World Bank estimates that 2.4 billion people lack a legal identity. By giving people a secure digital identity, AID:tech hope to facilitate access to important financial, social, and legal resources.

How the Global Goals are addressed

No povertyDigital identities and secure crypto-payments in the aid industry are seen as a crucial step for helping individuals out of poverty.